Lindsay Owens Reacts to Fed Rate Decision: “It’s time for Chair Powell to change course”

Lindsay Owens Reacts to Fed Rate Decision: “It’s time for Chair Powell to change course"

Following the Federal Reserve’s policy announcement this afternoon, Groundwork Collaborative Executive Director Lindsay Owens reacted with the following statement:

“Holding interest rates at a 23-year high threatens the economic security of millions of families and flies in the face of the incredible progress we’ve made in bringing down inflation by increasing productive capacity in our economy. It’s time for Chair Powell to change course and give families some relief from sky-high borrowing costs.”

Email press@groundworkcollaborative.org to speak with one of Groundwork’s experts about the FOMC meeting. 

Background

• High interest rates have pushed mortgage rates to decade-highs and severely curtailed the construction of more housing. Our shortage of 3.2 million homes is leading to higher costs for everyone and the CEO of real estate company Redfin said last week, “There’s going to be low supply for a long time to come. What the Fed did…will have a 30-year tail on it.” The Fed must move to cut interest rates and lower housing costs.
• The clean energy transition has also been a victim of high interest rates that have slowed investments in solar, wind, and other renewables. Rooftop solar panel installations are projected to only grow 5% this year, after growing nearly 40% year-over-year growth in 2023. Sens. Elizabeth Warren (D-MA) and Sheldon Whitehouse (D-RI) warned of this impact in a letter to the Federal Reserve on Monday. While the Fed claims it cannot consider climate effects as part of its mandate, volatile fossil fuel prices continue to be a source of price instability, and stifling the clean energy transition will only expose more families to this volatility in the years and decades to come.